What Does It Mean When a House Is Pending?

When a house is listed as “pending” in real estate, it signals that a seller has accepted an offer from a buyer, and both parties have entered into a signed purchase agreement. This status indicates the transaction is actively moving forward toward a final sale, but it has not yet closed. Various conditions must be met before ownership transfers.

Understanding Pending Status

The “pending” status means an offer has been accepted, and the sale is progressing, yet it is distinct from a “sold” status. While a property is pending, it is typically off the active market, and the seller is generally not seeking new offers. The pending period typically lasts 30 to 60 days, though this can vary.

Different forms of “pending” status exist, reflecting various stages or conditions of the sale. “Pending with Contingencies” is common, where the sale depends on specific conditions being satisfied, such as financing approval, a satisfactory home inspection, or a property appraisal matching the sale price. In contrast, “Pending Without Contingencies” means all conditions have been met or waived, indicating the sale is likely to close.

Some specialized pending statuses include “Pending Short Sale,” which applies when the property’s sale price is less than the outstanding mortgage balance, requiring lender approval to proceed. “Pending Probate” indicates the property is part of an estate, and the sale may need court approval, potentially extending the timeline. This status confirms a commitment from both buyer and seller to complete the transaction.

Key Activities During Pending

During the pending period, both buyers and sellers engage in specific activities to fulfill the terms of the purchase agreement and move towards closing. Buyers typically initiate a home inspection, where a professional evaluates the property’s condition, identifying any issues that may require negotiation for repairs or a price adjustment. This inspection contingency often has a timeframe of 5 to 10 business days for the buyer to respond after receiving the report.

Buyers also arrange for an appraisal, where a lender orders an independent valuation to ensure the property’s value supports the loan. If the appraisal comes in lower than the agreed-upon price, it can lead to renegotiations or the buyer covering the difference. Concurrently, buyers secure loan underwriting, providing financial documentation to their lender for mortgage approval, a process that can take 30 to 60 days.

Buyers also conduct a title search, performed by a title company or attorney, to verify legal ownership and identify any liens, encumbrances, or disputes on the property. This ensures a clear title can be transferred at closing. Sellers, in turn, cooperate by granting access for inspections and appraisals and may engage in negotiations regarding any requested repairs or credits based on inspection findings. Sellers also prepare for vacating the property and organizing documents for ownership transfer.

Possible Scenarios and Outcomes

The pending phase culminates in one of two outcomes: a successful closing or the sale falling through. A successful closing occurs when all contingencies are satisfied, and both parties complete document signing, ownership transfer, and fund exchange. This often takes place at a title company or attorney’s office, where the buyer provides the remaining balance and closing costs, and the seller signs the deed.

Conversely, a pending sale can fall through for several reasons. Common issues include a failed home inspection revealing significant problems, the property appraising for less than the agreed-upon price, or the buyer’s financing falling through due to changes in financial status or loan approval issues. In such cases, the earnest money deposit becomes subject to the contract terms, returned to the buyer if a contingency was not met.

Even when a house is pending, other buyers may still be able to make backup offers. A backup offer is a legally binding contract that positions a second buyer to purchase the home if the primary pending sale fails. While sellers are generally committed to the first accepted offer, a backup offer provides a safety net, saving time and effort if the initial deal fails.